Despite the impact of the Coronavirus pandemic on the property market, new research has found that the property wealth of the over-65s has increased by a collective £28 billion in the last year.
The research from equity release firm, Key, shows that the strong year-on-year increase in the collective property wealth of the over-65s came even though there was a £9 billion fall from a peak of £1.133 trillion at the beginning of the year.
Since 2010, over-65s have seen the value of their property wealth increase by 45 per cent or more than £344 billion, which equates to £73,400 per household.
The research also found significant regional variation, with London and the South East representing more than a third of the property wealth of the over-65s.
Will Hale, CEO at Key, said: “The property market has suffered along with the rest of the economy during the coronavirus crisis and effectively shut down for months.
“Coupled with the ongoing political and economic uncertainty of the past few years, it has gone through a turbulent time.
“However, property values seem to have remained relatively buoyant and with the current stamp duty exemption, we are likely to see continued interest from buyers.”
Steve Horton, a Partner with Milsted Langdon Financial Services, said: “The increase in property values may mean that couples need to look again at Inheritance Tax financial planning.
“Obtaining professional advice will give you peace of mind, knowing that you are leaving behind a legacy for your loved ones rather than handing over an unnecessary tax burden.”
For help with all aspects of Inheritance Tax planning, please contact us.